The purchase doesn’t make financial sense, Han said,
according to the magazine. The purchase would need approval from
the Canadian government, and a Chinese state-owned company may
lack the experience in handling queries, the magazine said,
citing Han, who is in charge of overseas acquisitions.

BHP Billiton Ltd., the world’s biggest mining company, has
made a hostile $40 billion bid for Potash Corp., which has said
it’s seeking other suitors. The lack of a Chinese counteroffer
so far may strengthen Melbourne-based BHP’s bidding position,
and success will give the world’s biggest mining company more
control over the supply of commodities into China.

“Canada historically hasn’t been receptive to acquisitions
by state-owned enterprises,” Glyn Lawcock, an analyst at UBS
AG, said. Lawcock said China is unlikely to make a bid.

Li Qiang, head of the president’s office at state-owned
Sinochem, didn’t answer calls to his office in Beijing.

The Chinese government hasn’t received any applications
from companies to bid for Potash Corp., Ministry of Commerce
spokesman Yao Jian said today in Beijing at a briefing.

Few Competitors

There are few companies that can compete with BHP, Han said,
according to Caijing magazine. Without a rival, all BHP needs to
do is to consider a “small” increase in its offer to be
successful, the magazine cited Han as saying.

Sinochem Group made initial inquiries with Potash Corp.’s
board about the possibility of holding talks, a person with
knowledge of the matter said last month. Sinochem and its
Sinofert Holdings Ltd. unit are “closely watching” BHP’s bid,
Sinofert’s Chief Executive Officer Feng Zhibin said Aug. 26.

“Investing in resources overseas is a very complicated
issue, and companies should be aware of the risks,” Yao from
the commerce ministry said today, responding to a question on
whether Sinochem Group has filed for permission to bid. He
didn’t specify companies or elaborate.

Chinese investors approached Alberta Investment Management
Corp. to consider a joint offer for Potash Corp., the Canadian
pension fund said Sept. 2. Any Chinese offer would have to
overcome objections from the Saskatchewan government, which said
an offer by state-owned enterprises won’t be in the interest of
the province where Potash Corp is based. A state-owned company
may lower prices which won’t be in the interest of taxpayers,
the province’s Energy and Resources Minister Bill Boyd said.

Sinochem said there may be opportunities to buy nitrogen,
phosphorus or other Potash Corp. assets, Caijing cited Han in
the interview.